ANALYST BRIEFING. 2Q FYE December 2011 Financial Results & Updates. 18 November E n g i n e e r e d f o r G r o w t h

Transcription

1 ANALYST BRIEFING 2Q FYE December 2011 Financial Results & Updates 18 November 2011 E n g i n e e r e d f o r G r o w t h

2 Disclaimer This Presentation is not intended to form the basis of any investment decision with respect to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). Neither this presentation nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. No representation or warranty, express or implied, is or will be made by MHB in relation to, and no responsibility or liability is or will be accepted by MHB as to the accuracy and completeness of, the Information made available, and any liability therefore is expressly disclaimed. This Presentation may contain forward-looking statements. Forward-looking statements by their nature involve known and unknown risks, uncertainties and other factors that are in many cases beyond MHB s control. Although MHB believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to it, no assurances can be given that such expectations will prove to have been correct. Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only as of their dates, and MHB undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. This Presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized, disclosed referred or passed on to others at any time without the prior written consent of MHB. Except for the yard facilities in the photographs, none of the vessels/structures belong to MHB. 2

3 Highlights Operational Strengthened project management team at Gumusut-Kakap FPS Kinabalu Topside is 80% completed Commenced work on Tapis-R and Tapis-Q Financial Revenue -52% QoQ Operating profit +28% QoQ Net profit +2% QoQ, providing interim normal tax rate pending further ITA New contracts OSX-3 FPSO External Turret Telok Gas Development Tapis Enhanced Oil Recovery (EOR) Project 3

4 Topic 1 Operational Review 2 2Q FYE December 2011 Results 3 New Contracts 4 Updates On Initiatives 5 Q&A 4

5 Gumusut-Kakap FPS 5

6 Gumusut-Kakap FPS 6

7 Kinabalu NAG Topside 7

8 FPSO Cendor 8

9 Floating Storage Unit (FSU) Lekas 9

10 Marine Repair, Energy Vessel 10

11 Marine Repair, Energy Vessel 11

12 Topic 1 Operational Review 2 2Q FYE December 2011 Results 3 New Contracts 4 Updates On Initiatives 5 Q&A 12

13 Income Statement, 3-Month 2Q FYE December 2011 Revenue -52% QoQ E&C, project in Turkmenistan nears completion, Gumusut Kakap at advance fabrication stage MRC, less repair business volume despite higher contribution by new projects Revenue RM million MRC E&C 1QD11 MRC E&C 2QD11 Operating profit +28% QoQ E&C, reversal in provision of projects near completion MRC, yet to recognize profit from FSU Lekas and FPSO Cendor conversions Op Profit RM million MRC E&C 1QD11 MRC E&C 2QD11 Operating profit margin at 18.3% E&C, benefited from reversal in provision Op Profit Margin % 19.0% 18.3% 6.3% 6.0% 6.9% 7.7% MRC E&C 1QD11 MRC E&C 2QD11 1QD11 1st Qtr of Financial Year Ending December 2011 (Apr-Jun 2011) 2QD11 2nd Qtr of Financial Year Ending December 2011 (Jul-Sep 2011) 13

14 Income Statement, 3-Month 2Q FYE December 2011 Pretax profit +4% QoQ Share of profit in jointly controlled entities (JCE) reflects project status in Turkmenistan No finance cost, Group is in a net cash position PBT RM million Fin.Cost JCE 1QD11 Fin.Cost JCE 2QD11 Net profit +2% QoQ Less tax credit from Investment Tax Allowance (ITA) Net Profit RM million Per Share Net EPS of 5.0 sen per share in 2Q Tax MI 1QD11 Tax MI 2QD11 1QD11 1st Qtr of Financial Year Ending December 2011 (Apr-Jun 2011) 2QD11 2nd Qtr of Financial Year Ending December 2011 (Jul-Sep 2011) 14

15 Income Statement, 6-Month FYE December 2011 Revenue -35% YoY E&C, novated Turkmenistan s project in January Gumusut Kakap at advance fabrication stage MRC, lower contribution by repairs of energy vessels Revenue RM million 2,003 2,196 1,246 1, MRC E&C Sep10 MRC E&C Sep11 Operating profit -23% YoY E&C, contribution by Turkmenistan s project at JCE level MRC, previous period had contract closed out on FPSO Ruby II. Yet to recognize profit from FSU Lekas, FPSO Cendor conversions Op Profit RM million MRC E&C Sep10 MRC E&C Sep11 Operating profit margin at 10.6% Op Profit Margin % E&C, from key ongoing projects 31.3% MRC, previous period had contract closed out on FPSO Ruby II 5.6% 9.0% 7.0% 9.9% 10.6% MRC E&C Sep10 MRC E&C Sep11 Sep10 6-month period during Financial Year Ended March 2011 (Apr-Sep 2010) Sep11 6-month period in Financial Year Ending December 2011 (Apr-Sep 2011) 15

16 Income Statement, 6-Month FYE December 2011 Pretax profit Share of profit in JCE increased after novation of Turkmenistan s project No finance cost in 6-month to Sep 2011 Net profit -15% YoY Providing for interim normal tax rate pending approval of tax credit from Investment Tax Allowance (ITA) on Yard Optimisation Per Share Net EPS of 10.0 sen per share in 6 months PBT RM million Fin.Cost JCE Sep10 Fin.Cost JCE Sep11 Net Profit RM million Tax MI Sep10 Tax MI Sep11 Sep10 6-month period during Financial Year Ended March 2011 (Apr-Sep 2010) Sep11 6-month period in Financial Year Ending December 2011 (Apr-Sep 2011) 16

17 Balance Sheet Strong balance sheet Fixed assets +1% QoQ to RM1.1bn Cash +15% QoQ to RM2.3bn Shareholders funds at RM2.4bn Able to accommodate corporate exercise and business expansion Total Assets RM million Cash 2,309.7 Total Liabilities RM million Shareholders Funds 2,377.6 Inventories 22.3 Sep 2011 RM4,486.6m Others 80.7 Sep 2011 RM4,486.6m Others Fixed Assets 1,112.0 Trade Receivables Trade Payables 1,

18 Order Book Orderbook consist mostly of FPSO Cendor Gumusut-Kakap FPS Kinabalu Topside Turkmenistan Block 1 Phase 1 Contract wins since Sep 2011 OSX-3 FPSO External Turret Telok Gas Development Tapis Enhanced Oil Recovery (EOR) Project Order Book RM million Gumusut Kakap Sep 2011 RM1,885.5m Kinabalu Others FPSO Cendor Turkmenistan FSU Lekas 88.6 MMHE has transferred the EPCIC contract for the Turkmenistan Block 1, Phase 1 gas development project to MMHE-TPGM by novation with effect from 1st January Order book reflects MMHE s 60% interest 18

19 Shareholding Information Technip SA 8.00% Technip SA 8.00% 15 Market Capitalisation RM billion PNB & PNB Unit Trust Funds 4.15% EPF 3.61% Other Malaysian Shareholders 9.06% As At Jun 2011 PNB & PNB Unit Trust Funds 6.43% EPF 4.10% Other Malaysian Shareholders 8.64% As At Sep Foreign Investors 8.68% Foreign Investors 6.33% Listing Sector Bursa Malaysia Main Market Trading/Services Index Component FTSE Bursa Malaysia KLCI MSCI Malaysia 19

20 Topic 1 Operational Review 2 2Q FYE December 2011 Results 3 New Contracts 4 Updates On Initiatives 5 Q&A 20

21 OSX-3 FPSO External Turret Salient points Contract value Contract type Customer Work scope Weight ~RM38 million Lump-sum Sofec, Inc Procurement, construction 3,500MT Complete by 4Q 2012 Project description Upon completion, the External Turret would be installed on OSX-3 FPSO The FPSO would be utilized within block BM-C-39 of the Campos Basin, offshore Brazil. OSX-3 FPSO would be moored in approximately 110 meters water depth MHB s most recent turret, the BP Angola external turret. Successfully installed on FPSO PSVM 21

22 Telok Gas Development Salient points Contract value Contract type Customer Work scope Structures Total weight RM236 million Lump-sum Complete overall contract by 1Q 2013 ExxonMobil (EMEPMI) Procurement, fabrication, onshore testing, load-out, offshore hookup, commissioning Telok A, B topsides Telok A, B jackets Approximately 11,160MT Project description An Entry Point Project under the Economic Transformation Programme Telok field is about 200km from shore. New platforms would be tied back to the existing Guntong E gas platform PDMS Image Of Telok A/B 22

23 Tapis Enhanced Oil Recovery (EOR) Project Salient points Contract value Contract type Customer Work scope Structures Total weight RM1,553 million Lump-sum Complete overall contract by 2Q 2013 ExxonMobil (EMEPMI) Procurement, fabrication, testing, load-out, transportation, installation, offshore hookup, commissioning Tapis Q, R topsides Tapis Q jacket 2 inter-platform bridges Approximately 23,700MT PDMS Image Of Tapis-R 23

24 Tapis Enhanced Oil Recovery (EOR) Project Project description Field located 200km offshore Kerteh, Terengganu at a water depth of 65 meters Produces among the world s highest quality crude extra-light and low-sulphur The 1st full-field EOR project in Malaysia Tapis R and Tapis Q would be installed adjacent to the existing Tapis B platform PDMS Image Of Tapis-Q 24

25 Topic 1 Operational Review 2 2Q FYE December 2011 Results 3 New Contracts 4 Updates On Initiatives 5 Q&A 25

26 Yard Optimisation Programme YO Programme at Pasir Gudang Current ongoing projects 25k MT skid track, bulkhead, dredging Infrastructure work at Idemitsu land Autoblast and priming workshop 80MT Luffing crane at 40MT bulkhead Capital expenditure Invested RM36m in 6-month period of current financial period Strategies with 2 yards Market positioning and specialisation Integration of facilities and operations Optimisation of asset utilisation/productivity 26

27 Strengthening Execution & Capabilities Development Developing fresh talents MMHE-Technip Capability Development collaboration 3 internal development programme Internalising external capabilities Select from MSO s talent pool Alignment with MHB s objectives Strengthening execution New organisation Focused on project execution 27

28 Thank You Merci E n g i n e e r e d f o r G r o w t h MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin 50050, Kuala Lumpur, Malaysia Investor Relations Contacts Telephone: +60 (3) Wan Mashitah Bte Wan Abdullah Sani Chief Financial Officer mashitah@mmhe.com.my Chang Kong Meng Investor Relations & Business Research chang.km@mmhe.com.my Website: